The Net Loss in Welfare from a Quota Is Proportionately

question 140

Multiple Choice

The net loss in welfare from a quota is proportionately larger than for a tariff because:

• A)​it does not result in government revenue.
• B)​the loss in consumer surplus is greater than the gain to producers and the government.
• C)​it prevents nations from fully realizing their competitive advantage.
• D)​it brings about higher prices and revenues to domestic producers.

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